(MRK) Merck - NYSE
Sector: Healthcare | Industry: Drug Manufacturers - General | Exchange: NYSE (USA) | Market Cap: 281.239m USD | Total Return: 27.9% in 12m
Avg Turnover: 1.35B
EPS Trend: 71.0%
Qual. Beats: 1
Rev. Trend: 95.1%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Merck & Co., Inc. (MRK) is a U.S.-based global healthcare company operating across two core segments: human health pharmaceuticals and animal health. The human health portfolio is anchored by Keytruda, a PD-1 immune checkpoint inhibitor that has become one of the leading oncology franchises in the industry, alongside a broad range of vaccines (including Gardasil and ProQuad), hospital specialty products, and treatments in virology, diabetes, and sleep medicine. Mercks pharmaceutical business is concentrated in therapeutic areas where high R&D intensity and patent protection are defining features of the competitive landscape.
The animal health segment provides veterinary pharmaceuticals, vaccines, and health management solutions and services for both livestock and companion animals. Livestock offerings span the Nuflor, Bovilis, Banamine, and Safe-Guard brands, while the companion animal portfolio includes the Bravecto parasiticides franchise, Sentinel parasiticides, Nobivac vaccines, and the Allflex Livestock Intelligence identification and monitoring platform. This dual human-and-animal health structure is relatively uncommon among large-cap drugmakers and provides diversification across regulatory environments and end markets.
Merck maintains an extensive network of external partnerships, including co-development and co-commercialization agreements with Daiichi Sankyo (for deruxtecan ADC candidates), AstraZeneca (for Lynparza), and Eisai, as well as collaborations with Bayer, Ridgeback Biotherapeutics, Moderna, LaNova, and Infinimmune. Founded in 1891 and headquartered in Rahway, New Jersey, the company is classified within the GICS Pharmaceuticals sub-industry and is a constituent of the mega-cap tier of U.S. listed equities.
- Winrevair launch accelerates as Keytruda patent cliff approaches 2028
- Gardasil vaccine sales decline on weak China demand and inventory normalization
- Daiichi Sankyo ADC partnership expands oncology pipeline beyond Keytruda
| Net Income: 8.94b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -3.83 > 1.0 |
| NWC/Revenue: 12.30% < 20% (prev 16.14%; Δ -3.83% < -1%) |
| CFO/TA 0.14 > 3% & CFO 17.9b > Net Income 8.94b |
| Net Debt (43.4b) to EBITDA (18.8b): 2.31 < 3 |
| Current Ratio: 1.30 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.47b) vs 12m ago -2.33% < -2% |
| Gross Margin: 75.91% > 18% (prev 75.73%; Δ 0.18% > 0.5%) |
| Asset Turnover: 53.81% > 50% (prev 55.60%; Δ -1.80% > 0%) |
| Interest Coverage Ratio: 8.33 > 6 (EBIT TTM 12.7b / Interest Expense TTM 1.52b) |
| A: 0.06 (Total Current Assets 35.0b - Total Current Liabilities 26.9b) / Total Assets 129b |
| B: 0.52 (Retained Earnings 66.7b / Total Assets 129b) |
| C: 0.10 (EBIT TTM 12.7b / Avg Total Assets 122b) |
| D: 0.55 (Book Value of Equity 45.9b / Total Liabilities 82.8b) |
| Altman-Z'' = 3.38 = A |
| DSRI: 1.10 (Receivables 12.2b/10.8b, Revenue 65.6b/64.0b) |
| GMI: 1.00 (GM 75.73% / 75.91%) |
| AQI: 1.11 (AQ_t 0.53 / AQ_t-1 0.48) |
| SGI: 1.02 (Revenue 65.6b / 64.0b) |
| TATA: -0.07 (NI 8.94b - CFO 17.9b) / TA 129b) |
| Beneish M = -2.86 (Cap -4..+1) = A |
As of June 26, 2026, the stock is trading at USD 120.60 with a total of 10,476,747 shares traded. Over the past week, the price has changed by +5.02%, over one month by +7.77%, over three months by +38.28% and over the past year by +27.94%.
Current recommended Stop Loss: 116.80 (which is 3.2% or 1.2 ATR below the current price).
Merck has received a consensus analysts rating of 4.04. Therefore, it is recommended to buy MRK.
- StrongBuy: 12
- Buy: 3
- Hold: 11
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 129.7 | 7.6% |
P/E Trailing = 32.0761
P/E Forward = 22.5225
P/S = 4.2762
P/B = 6.1301
P/EG = 5.295
Revenue TTM = 65.6b USD
EBIT TTM = 12.7b USD
EBITDA TTM = 18.8b USD
Long Term Debt = 46.7b USD (from longTermDebt, last quarter)
Short Term Debt = 2.44b USD (from shortTermDebt, last quarter)
Debt = 49.1b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 43.4b USD (calculated: Debt 49.1b - CCE 5.70b)
Enterprise Value = 325b USD (281b + Debt 49.1b - CCE 5.70b)
Interest Coverage Ratio = 8.33 (Ebit TTM 12.7b / Interest Expense TTM 1.52b)
EV/FCF = 23.00x (Enterprise Value 325b / FCF TTM 14.1b)
FCF Yield = 4.35% (FCF TTM 14.1b / Enterprise Value 325b)
FCF Margin = 21.52% (FCF TTM 14.1b / Revenue TTM 65.6b)
Net Margin = 13.62% (Net Income TTM 8.94b / Revenue TTM 65.6b)
Gross Margin = 75.91% ((Revenue TTM 65.6b - Cost of Revenue TTM 15.8b) / Revenue TTM)
Gross Margin QoQ = 81.92% (prev 70.49%)
Tobins Q-Ratio = 2.52 (Enterprise Value 325b / Total Assets 129b)
Interest Expense / Debt = 3.10% (Interest Expense 1.52b / Debt 49.1b)
Taxrate = 23.18% (2.70b / 11.6b)
NOPAT = 9.74b (EBIT 12.7b * (1 - 23.18%))
Current Ratio = 1.30 (Total Current Assets 35.0b / Total Current Liabilities 26.9b)
Debt / Equity = 1.07 (Debt 49.1b / totalStockholderEquity, last quarter 45.9b)
Debt / EBITDA = 2.31 (Net Debt 43.4b / EBITDA 18.8b)
Debt / FCF = 3.08 (Net Debt 43.4b / FCF TTM 14.1b)
Total Stockholder Equity = 49.8b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.33% (Net Income 8.94b / Total Assets 129b)
RoE = 17.93% (Net Income TTM 8.94b / Total Stockholder Equity 49.8b)
RoCE = 13.13% (EBIT 12.7b / Capital Employed (Equity 49.8b + L.T.Debt 46.7b))
RoIC = 9.65% (NOPAT 9.74b / Invested Capital 101b)
WACC = 5.65% (E(281b)/V(330b) * Re(6.22%) + D(49.1b)/V(330b) * Rd(3.10%) * (1-Tc(0.23)))
Discount Rate = 6.22% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -85.40 | Cagr: -1.44%
[DCF] Terminal Value 73.10% ; FCFF base≈15.3b ; Y1≈13.4b ; Y5≈10.8b
[DCF] Fair Price = 52.80 (EV 174b - Net Debt 43.4b = Equity 130b / Shares 2.47b; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 71.01 | EPS CAGR: 59.79% | SUE: 0.86 | # QB: 1
Revenue Correlation: 95.10 | Revenue CAGR: 4.06% | SUE: 2.42 | # QB: 1
EPS current Quarter (2026-06-30): EPS=-0.15 | Chg30d=-107.37% | Revisions=-43% | Analysts=5
EPS next Quarter (2026-09-30): EPS=2.31 | Chg30d=-0.36% | Revisions=-14% | Analysts=5
EPS current Year (2026-12-31): EPS=2.74 | Chg30d=+0.00% | Revisions=-50% | GrowthEPS=-69.5% | GrowthRev=+2.8%
EPS next Year (2027-12-31): EPS=9.56 | Chg30d=+0.43% | Revisions=-20% | GrowthEPS=+249.5% | GrowthRev=+4.9%
[Analyst] Revisions Ratio: -50%